Singapore Retrenchments Hit Post-Pandemic High as Re-entry Rates Fall

Singapore’s labour market deteriorated sharply in the second quarter of 2026. Retrenchments climbed to 4,620, the highest level since late 2020, while the share of retrenched workers finding jobs within six months dropped to 54.9% from 60.7% in the first quarter. Acting Minister for Manpower Jasmin Lau told Parliament on October 6 that the government is reviewing support measures as fresh graduates also struggle to land roles.

Retrenchments surge to post-pandemic peak

Singapore recorded 4,620 retrenchments in the second quarter of 2026, according to official data presented to Parliament on October 6. This marks the highest quarterly figure since late 2020. The surge was largely driven by business reorganisation and restructuring. The first quarter of 2026 saw 3,830 retrenchments, meaning Q2 retrenchments jumped 21% in just three months.

Re-entry rates fall sharply for displaced workers

Only 54.9% of retrenched residents found new jobs within six months in Q2 2026, down from 60.7% in Q1, Lau told Parliament. This decline signals a softer labour market despite seasonal hiring patterns. The re-entry rate is lower than in previous years, showing a broader deterioration in job prospects for displaced workers across experience levels.

Wage cuts hit retrenched professionals hardest

Retrenched professionals, managers, executives and technicians (PMETs) who return to work face steep pay cuts. Among those earning less after retrenchment, the median wage reduction is around 25% of their pre-retrenchment salary. Financial services recorded the lowest six-month re-entry rate for retrenched PMETs over the last 14 quarters, followed by wholesale trade. About six in 10 retrenched PMETs who found work earned more than before, but four in 10 took pay cuts.

Fresh graduates and retrenchment benefits under review

Fresh graduates from autonomous universities are also struggling. As of June 2026, 3,600 out of 18,000 graduates were still seeking employment. Only 74.4% of 2025 university graduates secured full-time roles within 12 months, compared with 87.5% in 2022. Meanwhile, the Ministry of Manpower is weighing administrative action against employers who can afford retrenchment benefits but refuse to pay. In 2025, about 88% of employers paid retrenchment benefits, though retrenchment payouts are not mandated by law in Singapore.

Final Thoughts

Singapore’s labour market is cooling faster than expected. With retrenchments at their highest since 2020 and re-entry rates falling, workers face longer job searches and steeper wage cuts. The government’s review of support measures signals concern about the pace and depth of the slowdown.

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